What Makes Geofencing a Great Way to Boost Promotional Campaigns?
- Posted on August 25, 2022 by Robert
- Reading time about 5 minutes
Customers today need hyper-personalized experiences when they associate with the brand! In this highly competitive space, businesses cannot survive and stay ahead of the game unless they make use of the latest technological advances and cutting-edge innovations to support their marketing and promotion efforts. As the demand for local experiences grows, location marketing is the need of the hour.
Brands must be aware of the fact that no two customer journeys are similar, which is why marketers need to level up their game by using location-based data and customer behavior to deliver exceptional experiences & gain profitable customers. Let’s find out how the right customer loyalty software solution aligned with geofencing can bring maximum benefits to your business.
All You Need to Know About Geofencing
Businesses must focus on creating customized advertising campaigns based on GPS (Geographical Identification Positioning) to attract potential customers within a set locational area. This is only possible through geofencing and gives marketers a chance to set unique marketing boundaries keeping the focus on specific customer needs around that area.
Using this approach enables the brand to send targeted messages and promotion campaigns to potential customers. The motive of these custom campaigns is to encourage customers to decide on product purchases faster in a frictionless manner. Though Genfencing is not a new concept, combining it with new technologies and well-planned strategies can offer a huge benefit to your marketing plans and even help you thrive especially in this competitive era.
Ways to Use Geofencing for Better Promotion Marketing Campaigns
As per the research by Salesforce, it is found that 30% of the international population relies on location-based services and nearly 80% of them wish to get location-specific alerts/updates from businesses. It is clear that customers are becoming more attracted to instant gratification and every user group has different needs, marketers must customize their marketing messages, promotion ads, and content to resonate with particular user groups.
Using a basic loyalty program is not enough if you want to drive user engagement and increase brand loyalty. Customers today are very selective and are open to a loyalty rewards program that understands
their behavior and anticipates their needs to offer the right rewards. That is why; marketers must adopt point-in-time pin drop locations.
Here are some of the ways to use geofencing in your marketing campaigns-
– Use Geofencing with Geoconquesting
Geoconquesting is one of the new marketing trends in the mobile advertising sector that makes use of location-based data to craft and deliver tailored promotional ads when your potential target audience is physically around the competitor stores.
For instance, the renowned brand, Walmart uses an app with a store mode that sends promotion ads whenever a potential customer is near the store. Using a location-based promotional-based strategy, customers are lured to buy more from Walmart.
Using this technique helps to boost brand awareness, encourage more customer purchases & beat potential competitors within the selected location radius.
– Keep the virtual location radius small
Ensure that you keep the location radius small to create more customized promotion campaigns. This will not only help to create and perform A/B testing on multiple campaigns within different locations. One rule you can follow is a 4-5minute travel radius that will help in creating more successful promotion ads.
Some common examples are as follows-
i. Select a pre-defined virtual radius and deliver rewards such as coupons or discounts to customers within that radius who recommends your store on social media platforms.
ii. Another example is to build a discount program for the restaurant after customer behavior analysis & offer a 20% discount for seasonal dishes within a pre-defined selected radius.
– Identify the right time to engage customers
Know your local customers and understand their demographics by using effective CRM data aligned with location events to help you plan and create the right message at the right time. This helps to make sure that the promotions you use are strategic and customized to your marketing goals, which will eventually help in bringing more benefits.
– Use Hyper-Contextual Targeting
This implies making use of promotion campaigns using data based on past location visits by customers, geography-specific events, search history, etc. to help your brand deliver customer-relevant promotional ads. To make this type of campaign work successfully, your brand must ensure that you have your store presence within a specific location that resonates with your target audience.
One example is to make use of a virtual fence within specific locations and use product bundling campaigns on specific sports apparel, which enable you to boost sales and grow revenue.
As you can see, Geofencing can offer several benefits to your business such as higher sales, a rise in revenue, and an increase in customer loyalty. Gain access to location-based data for insights into your customers’ time and context. Analyze and set patterns on where your customer lives and work, what and when they are shopping, what they love to do in their free time, etc. This will enable your business to use location-based data and target the right audience with customized loyalty promotion campaigns.
Novus, being a reliable Loyalty Management Software enables startups as well as big brands to make use of custom loyalty solutions based on their specific business needs and gain a competitive advantage. Connect with our experts today for a quick demo to guide you with the steps to leverage your customer and location data & help you implement personalized promotion campaigns using Novus.